When does a mortgage debt expire?

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A mortgage debt, like any other loan, can expire after certain years, whether it has been paid or not. This expiration implies that the debtor will no longer have the obligation to make the payment. However, if you have a mortgage and are thinking about letting it expire, you should know that there are few cases in which this occurs. Below we tell you everything you need to know about it.


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What is the prescription of a mortgage debt?
The prescription of a mortgage refers to the fact that the legal period has passed for the creditor to demand payment of the debt from the debtor (the holder of the mortgage). So when a mortgage debt expires, the bank can no longer claim any amount of money from the mortgage holder.

Prescription periods for a mortgage debt
For a mortgage debt to expire, a series of requirements must be met. The first of them is that 20 years must pass from the expiration date of the mortgage. This does not mean that the debt disappears, but rather that the creditor can no longer claim the debt Chinese Overseas America Number Data after that period. But in addition to this, these two conditions must be met:

That the creditor party (in this case the bank) has not carried out any judicial or extrajudicial action towards the debtor. That is, he has not notified the debtor or has not presented a notarial request to demand payment of the debt.
That the debtor does not accept or recognize that the mortgage debt belongs to him.
If these requirements are not met, the debtor will have to assume the mortgage charges and pay all the installments until the mortgage can be paid off.

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What happens if a mortgage debt is not paid?
In the event of non-payment of a mortgage, there may be several consequences, depending on how long this situation lasts. The first thing that will happen is that the bank will demand payment of the overdue bills before taking legal action. But if more than 12 months pass without making the corresponding payments, the bank could begin legal action in order to seize your home and put it up for auction to recover part of the loan.

But still, if the amount the bank gets after the auction is less than the outstanding debt, the debtor will still have to pay the remaining amount of the debt. For this reason, it is advisable that you have the help of a mortgage broker who can manage your mortgage and give you the best solution.

How to cancel mortgage debts?
As we have seen previously, a prescription for the debt in question is unlikely , since the creditor has 20 years to demand payment of the debt. Today, these processes are highly standardized in computer systems, so banking entities have the necessary tools to automatically claim debts.



However, there is the Second Chance Law , introduced in 2015, which is a legal mechanism intended for those people who have outstanding debts and cannot afford to pay. Both natural and legal persons can resort to this law to reformulate the outstanding debt so that they can pay it.

Taking advantage of this law is the best option for those people who cannot afford to pay a current mortgage debt, since they will obtain a series of facilities to be able to pay the mortgage , such as with a mortgage extension , redefining the existing debt. , etc.

On the other hand, it is not advisable to rely on the option of having the debt expire, since you run the risk that the interest will grow and you will end up paying a much larger amount than you would have paid initially. Also, if the bank takes legal action against you, in addition to also having to pay the mortgage, you will have to assume the legal costs of the operation.